Equivalent plans for Paid Leave

Minnesota Paid Leave is often the least expensive and easiest option for employers. For large employers who already offer private paid leave plans, the move to a state plan may result in cost savings. And for small employers, Minnesota Paid Leave will make a critical employee benefit affordable when it might not otherwise be.

You know your business best. No matter how you decide to bring Paid Leave to your employees, the process is easy and intuitive. For employers who work with the state plan, Paid Leave will handle the work of reviewing applications and making payments, with a clean and clear interface for employers to track and manage employee leaves.

For employers who choose to offer an equivalent plan, the information on this page will walk you through the straightforward, user-friendly process to submit your request.

An insurance carrier plan is a type of equivalent plan sold by a private insurance carrier to meet the requirements of the Minnesota Paid Leave law. The division is working with the Minnesota Department of Commerce to certify insurance carrier plans that meet requirements. A list of carriers with approved plans can be found in the Approved equivalent plans (PDF).

A self-insured plan is a type of equivalent plan where an employer manages paid leave requests and payments to employees on leave themselves, rather than through an insurance carrier or the state. Self-insured plans must be backed up by a surety bond to ensure they can make payments to employees who take leave.

To set up a surety bond, employers need to work with a surety company authorized to do business in Minnesota. The value of the surety bond must be equal to the total annual premiums for your business and workforce under the state plan. Use our Paid Leave calculator to determine your annual premiums.

Minnesota Paid Leave provides both Medical Leave, for an employee's own healthcare needs, and Family Leave, to care for others. Workers can take up to 12 weeks of Family or Medical Leave in one benefit year, or up to 20 weeks total if they qualify for both types of leave in the same year.

An approved equivalent plan can cover both Family and Medical Leave, or only one leave type. Employers who offer an equivalent plan for only one type of leave must pay premiums and participate in Minnesota Paid Leave to provide coverage for the other type.

Equivalent plans for Family or Medical Leave must meet the following conditions:

1. All employees who are covered under the state plan must be covered under the equivalent plan.
2. Eligibility requirements cannot be stricter than those in the state plan.
3. Weekly payments must be at least equal to those provided by the state plan and separate from other benefits.
4. The total amount of leave available must be at least equal to the amount provided by the state plan.
5. Job protections must be at least equal to those provided by the state plan.
6. Costs to employees cannot be more than what their premiums would be under the state plan.
7. For Medical Leave, the equivalent plan must cover any serious health condition, or medical care related to pregnancy, that would be covered under the state plan.
8. For Family Leave, the equivalent plan must cover any care for a family member with a serious health condition, bonding with a child, a family member called to active duty military service, or any safety leave event that would be covered under the state plan.
9. The equivalent plan must offer intermittent leave or reduced schedules consistent with the state plan.
10. The equivalent plan cannot impose any additional conditions or restrictions on the use of leave beyond those in the state plan.
11. Coverage must continue for 26 weeks after employee separation, or until the individual is hired by a new employer.
12. If a leave application is filed by a former employee, the equivalent plan must pay benefits for the full time of leave. Equivalent plans may not cut off eligibility for a former employee during an approved leave.

Employers who want to offer an equivalent plan rather than the state plan must request an Equivalent Plan Substitution.

To request a substitution, you must first make sure your employer accounts are set up. You will need a Paid Leave Administrator Account and one or more accounts with Unemployment Insurance (UI). Visit our Employer Accounts webpage for more information. Once you have your account set up, you are ready to start.

First, gather the following materials

1. For insurance carrier plans:

• Policy number, plan number, and insurance carrier
• Coverage effective dates (must cover one full year from the start of a quarter)
• Insurance policy document

2. For self-insured plans:

• Surety bond information form
• Self-insured plan document. We recommend using our self-insured plan guide for ease and to reduce processing time. If you prefer to compile plan information on your own, documentation must include:
  • Coverage effective dates (must cover one full year)
  • Plan details showing equivalency to the state program

3. Payment:

• A nonrefundable fee of $250, $500, or $1000 depending on employer size
• A processing fee that varies based on payment method

Next, navigate to your Paid Leave Administrator Account

Sign in to your Paid Leave Administrator Account and follow the prompts to:

1. Specify if you are requesting an equivalent plan for Family Leave, Medical Leave, or both.
2. Tell us whether you will be using an insurance carrier plan or are self-insured.
3. Enter your plan’s start date. It must start on the first day of a quarter and be in effect for a full calendar year.
4. Provide plan details.

Insurance carrier plans: provide the name of the insurance carrier, as well as your plan and policy numbers.

Self-insured plans: provide the surety bond number, as well as the name of the bond issuer and their contact information.

5. Certify that the plan meets Paid Leave requirements.
6. Upload supporting documents.

For insurance carrier plans, upload your policy document.

For self-insured plans, upload your surety bond information form and plan documentation.

7. Attest and sign your request.
8. Submit your fee payment. You will be directed to the U.S. Bank portal.

After you submit your request

After you submit your request, you will receive an email from U.S. Bank confirming your payment. You can check the status of your request at any time in your Paid Leave Administrator Account.

If your organization has subsidiaries with their own FEINs, you must submit a separate Equivalent Plan Substitution Request for each one. You will need to pay the fee for each request individually and will receive a separate receipt for each request.

For organizations with at least five FEINs who want to use the same equivalent plan for all of them, Paid Leave has set up a process to help you submit a consolidated request. This request will cover all your subsidiaries and allow you to pay all corresponding fees in one transaction.  

If your organization has five or more FEINs and you’d like to submit a multiple-entity request, reach out to the Paid Leave team at EmployerServices.DEED@state.mn.us.

Employers who have questions or need assistance can reach out to the Paid Leave Contact Center. Staff are ready to assist by phone or email.

To ask a question, fill out this form.

To reach the Contact Center by phone, call 651-556-7777 or 844-556-0444 (toll-free). Paid Leave staff are available 9:00 a.m. to 4:00 p.m., Monday through Friday, except state holidays.

The following videos show the steps you need to take to set up your Paid Leave Administrator Account and submit an equivalent plan request.